Presentation Transcript

1. HP Technology Services U.S. Go-to-Market StrategyFY12

   Rev.7 Updated: August 7, 2012 HP Restricted. For HP and Channel Partner Internal Use Only
2. Table of contents HP Technology Services (TS) U.S. Go-to-Market (GTM) Strategy Overview Objectives Enhancements to GTM TS Customer Segmentation Strategy HP-led vs. Channel-led Joint Managed Accounts Architecture Guiding Principles Key Definitions GTM 1 – New Business (Attach) GTM 2 – Installed Base (IB) Other Specific Strategies/Guidelines Accountability Code of Conduct Statement Strategic Conflict Escalation Process Resources and Additional Information HP Restricted. For HP and Channel Partner Internal Use Only
3. Objectives Create predictability by setting clear expectations (HP & Channel Partners) Build trust through consistency in sales engagements Avoid duplication of effort in the growing number of accounts where there will be both a direct and indirect presence Maximize, simplify, and accelerate the sales process Facilitate value-based Channel Partner differentiation Optimize sales coverage and resource allocation and investments Offer the best of HP + Partners to win and keep customers for life Work cooperatively to enhance our ability to capture more HP service opportunities Improve customer experience Put customer first in terms of preference and requirements HP Restricted. For HP and Channel Partner Internal Use Only
4. Enhancements Aligned TS direct and indirect sales forces via a unique GTM strategy supported by the ServiceONE program Input/endorsement by HP TS leaders & Partners Partners thru the Partner Services Executive Council Supported by improved operational processes Greater expertise Mandatory training for all HP Sales reps and managers Effective communication plan to all Channel Partners Greater accountability/management support Escalation process to resolve conflicts quickly and fairly over HP strategy between HP’s direct and channel efforts HP Restricted. For HP and Channel Partner Internal Use Only

5. TS Customer Segmentation Strategy

   HP-led vs. Channel-ledJoint Managed Accounts HP Restricted. For HP and Channel Partner Internal Use Only
6. TS U.S. GTM strategy Customer Segmentation - Overview Sales strategy is defined by Customer Segment Corporate accounts HP Technology Services has divided its market into four customer segments: Corporate Enterprise Commercial Small to Medium Business (SMB) Enterprise accounts Commercial accounts SMB Note: Commercial/SMB loosely equates to Emerging Growth Accounts (EGA) – HP ESSN GTM Customer segment designation HP Restricted. For HP and Channel Partner Internal Use Only
7. TS U.S. GTM strategy Customer Segmentation - Definition (1 of 4): HP-led and Channel-led Go-to-Market (GTM) strategy Corporate accounts The HP TS Sales Go-to-Market strategy in the four segments is defined as follows: Corporate and Enterprise = HP-led(HP Direct Sales organization - targeted sales focus) Commercial and SMB = Channel-led(with the exception of some “HP TS Installed Base Named accounts” – see definition on next slide) HP also has a defined set of Global accounts which are HP-led(These customers can span all segments depending on the size of the company in a particular geography). HP-led Enterprise accounts HP-led Global accounts Commercial accounts Channel-led SMB * HP-led and Channel-led definitions on next slide HP Restricted. For HP and Channel Partner Internal Use Only
8. Definitions: HP-led and channel-led HP Technology Services’ way of being more predictable HP-led: Communicates to the Channel Partner that this is where HP’s TS direct sales force is focused and going after business for a direct relationship. Once established (for more than 1 year) these become HP “Named” accounts. A master list is maintained internally. (See GTM FAQ for details). Channel-led: Communicates to HP’s TS Direct sales and the Channel Partner that this is not where the Direct sales force is focused (with the exception of some TS Installed Base Named accounts – see note below) and is not pursuing new accounts for a direct relationship thus leaving these customer segments open for HP’s valued Channel Partners to sell to and grow HP Technology Services business. This GTM strategy is to promote clarity, predictability and trust and help HP TS Direct and Channel Partners avoid duplication and conflict while working cooperatively to enhance our combined ability to capture more HP TS opportunities. Note: Definition of “HP TS Named Commercial accounts” - there are some Commercial accounts that have a large HP services footprint aligned to the HP Direct sales force at the customer’s request, these will continue to be HP-led. HP does not intend to pursue new TS Named Accounts in the Commercial and SMB market. HP Restricted. For HP and Channel Partner Internal Use Only
9. TS U.S. GTM strategy Customer Segmentation - Definition (2of 4): HP-led Global, Corporate, and Enterprise accounts HP Direct leads Service sales HP Direct Sales targets accounts in these segments HP sets the strategy with the customer for fulfillment of HP product and services HP actively engages channel partners in opportunities where the partner can play a pivotal role in proposing a solution, extending HP’s selling and delivery capability and closing business. HP account plan defines HP and channel partner collaboration. Channel Partners are encouraged and supported to win/open new accounts HP typically manages installed base (IB) and may compete with partners for IB business. Corporate accounts HP-led Enterprise accounts HP-led Global accounts HP Restricted. For HP and Channel Partner Internal Use Only
10. TS U.S. GTM strategy Customer Segmentation - Definition (3 of 4): Channel-led Commercial and SMB accounts Channel Partners lead Services Sales Channel Partners focus on new business and establishing and growing a significant annuity revenue stream by renewing service contracts for their installed base (IB) customers HP has limited involvement in these segments with some exceptions: HP focuses sales efforts in TS IB Named Commercial accounts (see earlier “Definitions” slide) After HP Care Pack expiration, if the Channel Partner has not managed the renewal, HP Direct will ensure that all renewal opportunities are addressed. Expectation is that partners will notify at a minimum 30 days in advance of expiration HP-led Global accounts Commercial accounts Channel-led SMB HP Restricted. For HP and Channel Partner Internal Use Only
11. TS U.S. GTM strategy Joint Accounts (3 of 4): HP and Channel presence in all segments “Playing together” – Joint Managed Accounts HP recognizes that Channel Partners are actively engaged in all customer segments Similarly, HP has some direct managed accounts in Commercial segment and manages some existing installed based accounts. Customer may opt to have HP Contractual Service agreements managed by both HP Direct and a Partner HP engages Channel Partners in large accounts as defined by customer requirements Channel Partners can expect HP to support them in winning new Commercial business HP invests in lead generation for Channel Partners in the Commercial and SMB market HP and Channel Partner will respect and support incumbent positions Corporate accounts HP-led Enterprise accounts HP and Channel presence HP-led Global accounts Commercial accounts Channel-led SMB HP Restricted. For HP and Channel Partner Internal Use Only

12. Architecture

    Guiding PrinciplesKey DefinitionsGTM 1 – New Business (Attach)GTM 2 – Installed Base BusinessOther Specific Strategies/Guidelines HP Restricted. For HP and Channel Partner Internal Use Only
13. Guiding principles Technology Services GTM Principles over all customer segments HP Restricted. For HP and Channel Partner Internal Use Only
14. Key definitions – HP Technology Services To better understand the HP Technology Services GTM architecture, it is helpful to provide the following key definitions New Sales (Attach) HP’s preferred method is for service sales to follow the hardware at time of sale HP Care Pack Services (Fixed & Flexible) are pre-defined, pre-paid, packaged service level agreements that apply to a specific product. Some (such as Proactive Services and Education Services) pertain to a computing environment, not a specific product Option Bands (Flexible HP Care Pack Services only) Provides service configurability on Integrity servers, enterprise storage and some ISS products and are converted to HP Contractual Services upon expiration Conversions All service offerings packaged or options sold with hardware should be converted to HP Contractual Services after its initial pre paid coverage period expires Renewals Existing HP Contractual Services are renewed using the Globally Integrated Services (GIS) menu system Post Warranty Fixed HP Care Pack Services Sold either at time of warranty expiration or on the expiration date of the original HP Care Pack Channel Partner Wherever “Channel-led” or “Channel Partner” appears, this includes HP Alliance Partners as well as well as HP Authorized Resellers HP Restricted. For HP and Channel Partner Internal Use Only
15. What TS GTM covers GTM 1: Attach Business Services at the point of hardware and software sales HP Care Pack New HP Contractual Services (contracts) GTM 2: Installed Base Business (IB) Services at renewal time Conversion of an HP Care Pack to a contract Renewal of contracts Contract upselling and cross sell GTM 1: Regardless of the customer segmentation (HP-led or Channel-led), HP Channel Partners can sell HP fixed Care Packs, flexible Care Packs and new contracts – plain and simple. GTM 2: Due to the complexity of Installed Base (IB) management, a more detailed explanation of HP’s strategic intent for partner participation in IB management is provided in the following four slides. HP Restricted. For HP and Channel Partner Internal Use Only
16. GTM 2: HP-led part 1 Partner participation in Installed Base (IB) management Customer Segment: HP-led Global/Corporate/Enterprise “named” accounts Note: Customer may opt to have HP Contractual Service agreements managed by both HP Direct and a Partner. * After Care Pack expiration, HP will ensure that all conversions and renewal opportunities are addressed HP Restricted. For HP and Channel Partner Internal Use Only
17. GTM 2: HP-led part 2 Partner participation in Installed Base (IB) management Customer Segment: HP-led Global/Corporate/Enterprise “named” accounts Note: Customer may opt to have HP Contractual Service agreements managed by both HP Direct and a Partner. * After Care Pack expiration, HP will ensure that all conversions and renewal opportunities are addressed HP Restricted. For HP and Channel Partner Internal Use Only
18. GTM 2: Channel-led Partner participation in Installed Base (IB) management Customer Segment: Channel-led Commercial/SMB Note: Customer may opt to have HP Contractual Service agreements managed by both HP Direct and a Partner. * After Care Pack expiration, HP will ensure that all conversions and renewal opportunities are addressed HP Restricted. For HP and Channel Partner Internal Use Only
19. GTM 2: Migration Migration of contracts between HP and Channel Partner HP Migration Strategy for all segments between HP Direct and Channel Partner (SCS only) *A sound business case can include reasons of customer satisfaction (poor delivery or support) or conversion/renewal not done before expiration (after Care Pack expiration, HP will ensure that all conversions and renewal opportunities are addressed). Pricing will not be a determining factor. No additional discounts will be offered that might encourage migration. For further details on the HP TS renewal process consult your HP Installed Base Representative or Manager. For details on HP’s Migration/Transition Quoting Policy – please see next slide. HP Restricted. For HP and Channel Partner Internal Use Only
20. Migration/Transition quoting policy The consolidation or migration, which would occur only at the annual contract renewal or at the end of any applicable multi-year agreement period, must be a minimum of 30 days prior to contract expiration. Exceptions will be made for: Requests related to any customer Request for Quote (RFQ) or Request for Proposal (RFP) process. These requests MUST contain the customer RFQ/RFP documentation Requests approved by the Channel Installed Base Manager  All renewals, collections, promotions of sales of service agreements to end-users with the SCS Partner are the Partner’s sole responsibility. If the SCS Partner does not order its service agreement with a particular end-user, the HP channel Installed Base team will continue to work with the partner after expiration in order to execute a service agreement. HP Restricted. For HP and Channel Partner Internal Use Only
21. TS U.S. GTM strategy Federal Business (FED) Federal may default to HP-led. TS GTM Guiding Principles apply The Federal customer is in control of their buying motives based on the rules that govern them (buying vehicles, contracts) and dictate how they procure. HP cannot overstep these rules and HP’s TS GTM Strategy does not override the Federal customer’s requirements. Direct SAP contract data access When a U.S. Federal agency issues an RFQ, RFP, or provides letter of authorization. Partners can gain access to SAP configuration information to facilitate the Federal (3) bid requirement with the customer’s release authorization. Indirect SAP contract data access When the U.S. Federal agency issues an FAQ, RFP, or provides letter of authorization. Direct Federal Sales teams can gain access to SAP configuration information to facilitate the Federal (3) bid requirement with the partner’s release authorization. HP Restricted. For HP and Channel Partner Internal Use Only
22. TS U.S. GTM strategy State/Local Government, Education Business (SLED) SLED includes: State/Local Government, Higher Education, K-12, Public Health. SLED may default to HP-led. TS GTM Guiding Principles apply HP will make every effort to support the incumbent position (direct/indirect) within SLED Incumbent is defined as the Business or Partner that holds the majority of the base dollars. Customer Segmentation: The GTM customer segment definitions are different within SLED to be consistent with the established HP ESSN GTM customer segment definitions. The basic sales strategy of HP-led/Channel-led is consistent with the overall TS GTM Strategy. Premier Accounts = Typically HP-led Elite Accounts = Typically Channel-led Definitions for Premier (HP-led) and Elite (Channel-led) on next slide HP Restricted. For HP and Channel Partner Internal Use Only
23. Definitions: Premier (HP-led) and Elite (Channel-led) Premier: Typically HP-led with Account Team led by an Account General Manager. Channel Partners involved depending on fulfillment and buying vehicle. In some Premier Accounts the Channel Partner may hold the buying vehicle and in that case will drive the day to day relationship. In other cases the Channel Partner may support the Account team with Product fulfillment. Elite: Typically driven by Channel Partner utilizing approved buying vehicles in which case the Channel Partner may act as fulfillment or drive the sale based on buying vehicle. The Installed Base Contract renewals are typically HP-led because of the approved buying vehicles and associated discount structure. In some cases the client may decide to utilize a Channel Partner to fulfill a MBE requirement. When Channel Partners are engaged they are encouraged to sell and Attach TS Services with the Product. This is a strategic intent by TS for the sake of clarity and predictability and does not imply an engagement model for allocating accounts, but rather the defining of a directional sales GTM strategy that promotes predictability and trust and helps HP TS Direct and Channel Partners avoid duplication and conflict while working cooperatively to enhance our combined ability to capture more HP TS opportunities. HP Restricted. For HP and Channel Partner Internal Use Only
24. HP recognition of multiple partners in an account HP will support the “incumbent partner” in the retention of HP Contractual Service agreements Incumbent is defined as the partner that holds current Flex Care Pack or Contract When multiple partners hold contracts with a customer, the Partner with the majority of the base $$ will be recognized by HP as the incumbent Customer may choose the Partner they want to work with. This request must be made by the Customer in writing Partner Data Privacy release should be obtained from the incumbent Partner before SAP data is shared Authorized Partners may quote contract services when provided with configuration data directly from the customer HP Restricted. For HP and Channel Partner Internal Use Only

25. Accountability

    Code of Conduct StatementStrategic Conflict Escalation Process HP Restricted. For HP and Channel Partner Internal Use Only
26. Code of conduct statement Data Privacy: Both HP and its Partners have a duty to protect/secure HP contractual data and respect both end-user and customer rights. For details on both please consult your HP Installed Base Representative or Manager In order to achieve our TS GTM objectives, it is important that HP TS and Partner sales employees commit to a full understanding of this GTM Strategy, embrace the training that is made available and abide by it’s strategic intent in all areas: HP Direct is not to solicit contract migration from Partner to Direct HP Direct is not to solicit for “attach” TS sales independently in non-named Commercial or SMB accounts led by Channel Partners Channel Partners should not independently pursue business in HP Global, Corporate, Enterprise, or TS Named accounts in direct competition with HP TS-branded services sales Channel Partners should not seek to replace HP Contractual Service Agreements with agreements that include no HP Technology Services content In the event a conflict occurs and cannot be resolved immediately, an escalation process is in place to resolve quickly and fairly (see next slide) HP Restricted. For HP and Channel Partner Internal Use Only
27. Strategy conflict escalation process In place to resolve HP-internal channel conflicts over HP strategy between HP’s direct and channel efforts quickly and fairly, as well as to avoid customer confusion. The issue details (situation/names) are documented by HP personnel and sent to the TS appointed compliance representative. Step 1 The appointed compliance representative will document and track each reported contravention and assign it a “tracking” number. Step 2 Compliance representative will arrange for the Manager of the involved HP direct Sales rep and TS Channel Manager of the involved HP Channel Partner to meet to discuss the situation and attempt to arrive at a mutually acceptable resolution. Step 3 If the matter remains unresolved at the end of Step 3, the case is reported up to the Sales Leader responsible for both TS direct and indirect Channel Sales for a resolution. Step 4 If the matter remains unresolved at the end of Step 4, then the case is reported up to the U.S. Regional TS SVP/General Manager for final determination of HP’s strategy on a particular engagement. The escalation must respect the confidential information of the channel partner and the independent competitive posture of HP and the channel partner Step 5 HP Restricted. For HP and Channel Partner Internal Use Only

28. Resources and additional information

    HP Restricted. For HP and Channel Partner Internal Use Only
29. Resources and additional information The TS GTM Strategy is available in the “Services” section of the U.S. version of the HP Partner Portal, as well as on the Americas TS Sales website in the left column under “Sales Resources” Please check frequently to make sure you have the most updated version (current version is Rev. 7, dated 8/7/12) Additional information and documentation are also available and posted on these sites, including; Go-to-Market FAQ Training Webinars (recorded) On-demand for Partner Community Mandatory for HP TS Sales personnel HP Restricted. For HP and Channel Partner Internal Use Only

30. Thank you